This two digit code is to identify the reason why there was no employees tax deducted on the income. The two digit codes that might appear on your IRP5 are listed below:
| 01 | Invalid from 1 March 2002 |
| 02 | Earn less than the tax threshold |
| 03 | Independent contractor or Director's fees for RSA resident NED (Applicable from 1 March 2017) |
| 04 | Non-taxable earnings including |
| - Nil directives, and | |
| - Income protection annuities from 1 March 2015 | |
| 05 | Exempt foreign employment income |
| 06 | Directors remuneration - Income quantified in the following year of assessment |
| 07 | Labour Broker with valid IRP 30 (only valid from 1 March 2004) |
| 08 | No Tax to be withheld due to Medical Scheme Fees Tax Credit allowed (Applicable from 1 March 2014) and/or additional Medical Tax Credit is allowed here the employee is 65 years or older (Applicable from 1 March 2016) |
| 09 | Par 11A(5) Fourth Schedule notification - No withholding possible (Applicable from 1 March 2013). |
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